Godot Light2D with Light Occluder 2D and Normal Map Sprite.
Testing a pixel art sprite with normal map with Godot Light2D and Occluder2D. To make shadow not casting on top of sprite, you need to use both "Item Cull Mask" option for "Shadow" and "Range". "Shadow" mask determine which layer to receive shadow. "Range" mask determine which layer to receive light.